FIRST ON FOX: An unlikely bipartisan duo is teaming up to force defense contractors to prioritize military readiness over shareholder value.

Sens. Josh Hawley, R-Mo., and Elizabeth Warren, D-Mass., introduced legislation that would require major defense contractors to prioritize delivering weapons by fulfilling their contracts fueled by taxpayer dollars over rewarding shareholders, with stiffer guardrails and oversight on the companies.

Their bill, Prioritizing the Warfighter in Defense Contracting Act of 2026, would restrict stock buybacks, dividends and high executive pay unless companies meet Pentagon performance standards in their contracts.

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“America’s defense contractors should be focused on expanding production, not padding their bottom lines,” Hawley said in a statement to Fox News Digital. “But even as they make record profits, some firms have spent big on stock buybacks, dividend payouts and exorbitant executive salaries.”

The lawmakers argued that for several years, defense contractors have struggled to deliver weapons systems on time, on budget or in sufficient quantities for the military, and instead dumped the eye-popping sums of taxpayer money flowing to them into their own coffers, rather than invest in research and development that could speed up the process.

They pointed to a Government Accountability Office (GAO) report published last year that found that defense acquisition programs were plagued by delays and cost overruns, with delays for major programs increasing “by 18 months” in just the last year, with combined cost estimates creeping over $49 billion during the same period.

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Since 2021, the top four defense contractors — Lockheed Martin, Raytheon, General Dynamics and Boeing — have increased spending and spent $89 billion on stock buybacks and dividends. Two-thirds of that came from taxpayer dollars, according to Warren’s office.

“It makes no sense for the federal government to fork over billions in taxpayer dollars to giant military contractors while their executives buy back their own company’s stock instead of investing in our national defense,” Warren said in a statement to Fox News Digital. “This bipartisan bill will stop defense contractors from abusing the system at taxpayer expense and put our national security over Wall Street profits.”

The legislation also gives the Pentagon more oversight tools to identify underperforming defense contractors and require those contractors to submit a remediation plan.

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It also grants the Department of War stronger enforcement powers for contractors that aren’t meeting the agency’s standards, including suspending contract payments, ending eligibility for progress payments or terminating contracts altogether.

Hawley and Warren’s bill would also require the Pentagon to provide public reports on the contractors subject to their law, which contractors were granted waivers from the change in requirements and which companies have violated the rules.

The legislation would also codify an executive order President Donald Trump signed earlier this year that required a similar crackdown on underperforming defense contractors.

“Earlier this year, President Trump led the way with an executive order barring underperforming defense companies from engaging in these practices,” Hawley said. “Now, it’s time for Congress to act by codifying the President’s executive order into law, ensuring that America’s warfighters are prioritized over corporate profit.”

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An embattled lawmaker facing five decades in prison will face the congressional spotlight Thursday during an ethics trial that could result in her expulsion from the House of Representatives.

Rep. Sheila Cherfilus-McCormick, D-Fla., is expected to testify before the House Ethics Committee during a rare public hearing Thursday afternoon. The case is separate from a sprawling federal indictment accusing Cherfilus-McCormick of stealing more than $5 million in disaster relief funds to finance her inaugural congressional run in 2021 and purchase luxury items, including a large diamond ring. The Florida Democrat is also alleged to have participated in a straw donor scheme and conspired to file a false federal tax return.

Cherfilus-McCormick has repeatedly sought to delay the hearing, citing the ongoing federal criminal case and losing her legal representation earlier in March. It is not clear whether the Florida Democrat will be represented by an attorney at the hearing. 

Cherfilus McCormick said in a statement sent to Fox News that she is “deeply disappointed” the bipartisan committee chose to proceed with a trial, alleging a violation of her due process rights.

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“I urge the Committee to follow its own precedents and uphold fairness and not allow this process to be driven by politics or numbers,” Cherfilus-McCormick said. “I welcome the opportunity to set the record straight and challenge these inaccuracies, when I am legally able to do so.”

Cherfilus-McCormick has denied wrongdoing after being indicted in November 2025 and pleaded not guilty in federal court. She has repeatedly defied calls from Republicans to resign — a move that would have avoided the ethics hearing and possible expulsion.

According to the indictment, Trinity Health Care Services, a company owned by Cherfilus-McCormick and her brother, Edwin Cherfilus, received $5 million in Federal Emergency Management Agency (FEMA) overpayment from the state of Florida for a COVID-19 vaccine contract.

Rather than return the money, federal prosecutors allege the duo laundered the money through multiple bank accounts to hide its origin.

The House Ethics Committee unveiled a 27-count “statement of alleged violations” against Cherfilus-McCormick that is expected to be presented during the hearing Thursday. 

The hearing itself is extremely rare. It will be the first time the eight-member panel will hold a public hearing against a lawmaker since 2010.

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Rep. Greg Steube, R-Fla., has said he would move forward with a resolution seeking to expel Cherfilus-McCormick regardless of the trial’s outcome. Under House rules, two-thirds of lawmakers — meaning a swath of Democrats — would need to vote in the affirmative to expel the Florida Democrat. 

“You’re in a situation where you have a sitting member of Congress who’s allegedly stolen over $5 million in taxpayer funds,” Steube told reporters Tuesday. “She should immediately resign instead of going through this process. But she’s going to force us to do this.”

Steube also said a possible recommendation of expulsion from the committee could force Democrats to support his resolution.

“If the committee in a bipartisan manner, it recommends an expulsion that puts the Democratic caucus in a very tough position because you would be undermining your own members on the Ethics Committee.”

But House Democratic leadership, who have largely defended Cherfilus-McCormick, has yet to say whether they would support an expulsion resolution following the hearing’s conclusion. 

Cherfilus-McCormick was among a group of Democrats who stood behind House Minority Leader Hakeem Jeffries, D-N.Y., when he gave remarks on the Department of Homeland Security (DHS) shutdown outside the U.S. Capitol last week. He responded, “next question,” when asked by Fox News about the expulsion threat on Tuesday.

“I’m not going to prejudge the outcome that they arrive to,” House Democratic Conference Chairman Pete Aguilar, D-Calif., said Wednesday. “I respect the members of the ethics committee and the work that they have to do.”

Democrats’ refusal so far to condemn Cherfilus-McCormick has prompted sharp criticism from Republicans. 

“So-called ‘Leader’ Hakeem Jeffries talks a big game on corruption, but when it’s one of his own, he suddenly loses his voice,” NRCC spokesman Mike Marinella said in a statement. 

Some Republicans have also complained about a double standard with the chamber’s treatment of Cherfilus-McCormick by making comparisons to former Rep. George Santos, R-N.Y. The scandal-plagued lawmaker was expelled from Congress in 2023 before an ethics hearing or criminal conviction.

“It seems like what happened to George was just like a runaway freight train up here,” Rep. Byron Donalds, R-Fla., said Wednesday. “They didn’t even give George an opportunity to get fully through ethics. And so this one’s been a little bit more deliberate.”

“I think going forward, how this one’s been conducted is how it should go,” Donalds added, referring to the anticipated Cherfilus-McCormick hearing. “It should be deliberate before these kind of judgments just end up on the House floor.”

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A former accountant and lawyer for the disgraced financier Jeffrey Epstein both told the House Oversight Committee earlier this month that the Department of Justice had never interviewed them about Epstein’s crimes.

“I’ve never been questioned by any government authority,” Epstein’s ex-accountant Richard Kahn said.

He noted that he had received a grand jury subpoena from the Southern District of New York and from the U.S. Virgin Island’s Department of Justice for documents about Epstein’s property.

“Both of the requests were for the same thing. They were asking for Epstein’s estate documents. They wanted to see his will and his 1953 trust,” Kahn said.

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Similarly, Darren Indyke said he had never been asked about Epstein’s dealings.

“Personally, no,” Indyke told the Oversight Committee. “I don’t believe I have.”

When asked if that surprised him, Indyke told investigators he believed it was consistent with the scope of his employment.

“Given my role as a transactional attorney for Mr. Epstein, no,” Indyke said.

Epstein, a former financier with a formidable social circle, died in 2019 while imprisoned on charges of sex trafficking minors. His death, which was ruled a suicide, left behind questions about whether Epstein had facilitated illegal sexual encounters for some of his contacts and prompted public demands for accountability for possible accomplices.

Like many public figures, Kahn and Indyke both appear in the Epstein Files — troves of documents released by the DOJ in compliance with the Epstein Files Transparency Act.

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Their communications in the files do not, on their own, implicate any wrongdoing, and neither does their appearance before the House Oversight Committee.

Their depositions come among a series of other interviews from lawmakers on Capitol Hill. Interviewers have called figures like former President Bill Clinton, former Secretary of State Hillary Clinton, billionaire businessman Les Wexner and Epstein’s accomplice and romantic partner Ghislaine Maxwell to deliver testimony.

So far, none of the subjects interviewed by the Oversight Committee has faced charges for their proximity to Epstein, except for Maxwell. She was convicted in 2022 on charges of exploiting underage girls.

Indyke, the attorney, said he was aware of Epstein’s original 2008 plea deal in Florida, where he admitted to soliciting a minor for prostitution.

“He was adamant that he had no idea that anyone involved was underage and personally assured me that he would never again let himself be in that position. I believed him, and I made the mistake of believing that Mr. Epstein would not again commit a crime,” Indyke said.

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Kahn, Epstein’s accountant, gave a similar statement.

“Epstein told me his 2006 arrest was a mistake, that he did not know the woman was underage, and that nothing like that would happen again,” Kahn said.

“I believed him at the time and never saw what appeared to be a minor in his presence. Had I learned of his horrific behavior, I would have quit work immediately,” Kahn added.

Fox News Digital reached out to Kahn and Indyke for comment.

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House Minority Leader Hakeem Jeffries, D-N.Y., once said that failing to fully fund the Department of Homeland Security (DHS) was “legislative malpractice” — a position he is now rejecting in the current funding standoff with Republicans.

“We are here today to do a single job, and that should be to fund fully the Department of Homeland Security,” Jeffries said during a 2015 speech on the House floor. 

Jeffries, near the start of his congressional career, urged the Republican-controlled House to pass a “clean” DHS bill that year when the department was on the brink of a partial government shutdown.

“Anything else is an abdication of our responsibility. Anything else is an act of legislative malpractice,” Jeffries said at the time, referring to providing full-year appropriations to the department.

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A decade later, Jeffries has reversed that position, arguing that fully funding DHS would be a failure of Congress. He and Senate Minority Leader Chuck Schumer, D-N.Y., have withheld their votes on a full-year DHS funding bill as they demand various reforms to rein in immigration enforcement.

“Taxpayer dollars should be used to make life more affordable for the American people, not brutalize or kill them,” Jeffries said in February. “The American people know ICE [Immigration and Customs Enforcement] is out of control.”

The 39-day funding standoff has snarled air travel across the country as passengers face hours-long wait times at airport security checkpoints due to a shortage of TSA workers. Tens of thousands of DHS employees — including TSA agents — are reporting to work without pay during the shutdown, leading some to call off work or quit altogether.

Some TSA personnel are sleeping in cars and selling blood plasma to make ends meet, Acting Deputy TSA Administrator Adam Stahl said Tuesday.

Jeffries is expected to vote against a full-year DHS measure with a majority of House Democrats this week. The minority leader has repeatedly voted against a “clean” DHS spending measure since the funding lapse began on Feb. 14.

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House Speaker Mike Johnson, R-La., has narrowly steered the legislation through his chamber with largely Republican votes, but the spending measure has stalled in the Senate with nearly all Democrats moving to filibuster it. 

Jeffries, by contrast, is seeking to force a vote on a DHS appropriations bill that would fund the department minus its immigration enforcement functions. 

“We can fund TSA, fund the Coast Guard, fund FEMA, fund our cybersecurity professionals or continue to allow ICE to brutalize and, in some cases, kill American citizens or to violently target law-abiding immigrant families,” Jeffries said during a news conference last week.

It’s a position that he warned could put Americans in danger during the 2015 speech.

“We’re playing political games at a time when the safety and the security of the American people is being threatened,” Jeffries said regarding the prospect of not passing a full-year DHS bill.

A spokesperson for Jeffries did not immediately respond to Fox News Digital’s request for comment.

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